The world's sixth-biggest reinsurer, Gerling, has stayed away from the the annual reinsurance price negotiations for 2003, as it continued to revive itself with extra capital.

The world's sixth-biggest reinsurer, Gerling, has stayed away from the annual reinsurance price negotiations for 2003, as it continued to revive itself with extra capital.

Participants at the traditional Baden-Baden meeting said Gerling's peers were ready to fill in the capacity gap left by the Cologne-based firm.

Insurers and reinsurers - which take risks that are too large for insurers - held initial talks over reinsurance prices at Monte Carlo last month.

Wilson Laidlaw, a partner at reinsurance brokers First City, said: "People are running around like headless chickens, trying to pick up Gerling's business."

Several analysts have said Gerling's search for a partner had dragged on "too long", making it increasingly doubtful that the firm could be saved. Gerling's absence will make it more difficult for the firm to secure new underwriting business in its main markets.

Competition has forced reinsurers to accept premiums below possible payouts, but many have adopted a tougher line since September 11.

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